Industry News by Nemesis

Endiama, Alrosa Expedite Search for New Angola Diamond Deposits

Angolan state-owned diamond company, Endiama said that it will up the search for new diamond deposits in the country in partnership with Russia’s Alrosa.

Local news agency, Angop quoted company chief executive Carlos Sumbula as saying that the country was looking forward to the discovery of new kimberlites.

Of over 1,000 known kimberlite deposits, only three were being explored, including the Catoca mine, which accounts for 87 percent of Angola’s diamond production.

The partnership was also prospecting for fresh alluvial deposits, according to Angop.

Endiama had the alluvial projects of Cangandala, Milando and Chinguvo in the prospecting phase.

Kimberlites that were also in the prospecting phase included Luangue, Tchiafua, Vulege, Gambo, Gango, Quitubia and Tchegi.

Alrosa and Endiama inked a Memorandum of Understanding on joint work in June 2013 and this was followed by an agreement signed in February 2014 establishing an exploration joint venture in Angola.

The first stage of the agreement was said at the time to comprise the acquisition of the prospective Cassango area for three years of exploration work with the total financing estimated at $15.5 million.

The agreement envisaged granting the joint venture with diamond mining rights in the event of discovery of a cost effective kimberlite deposit.

Alrosa and Endiama had been also been major shareholders in the Catoca joint mining project.